Metals explorer Symbol Mining (ASX: SL1) has been given the all clear to commence “full scale” mining operations at its Macy project in Nigeria.
Symbol Mining said it has received final approval for a mining lease from the Nigerian Mining Cadastral Office for its high-grade zinc and lead prospect at Macy.
The news means that the junior explorer is set to make significant explorational progress over the coming months and is already eyeing “strong cash flow” later this year, according to its CEO Tim Wither.
According to Symbol, the polymetallic Macy project is a low cost, low capital expenditure, high cash flow project that is gradually being readied to commence production with the ultimate aim of establishing Nigeria’s first industrial-scale mining operation for several years.
In total, the explorer is advancing two key project areas in Nigeria.
‘Imperial’ contains 3 exploration licences spanning 510 square kilometres and is being progressed as part of a 60/40 joint-venture deal with Goidel Resources which owns 40% of the project.
Of prime significance is the Macy deposit with initial JORC results showing world-class grades of both zinc and lead. Most recent estimates indicate that the Macy deposit has an indicated and inferred JORC resource of 132,700 tonnes at 18.3% zinc and 2.1% lead.
The explorer’s other highly prospective key project area is ‘Tawny’ where the company currently holds 1 exploration lease covering 7 square kilometres. Symbol is pursuing this project in partnership with joint-venture partner Adudu Farms Nigeria which holds 40%.
Symbol’s CEO Mr Tim Wither said receiving approval for the mining lease and commencing full-scale mining at the Macy Project was a great accomplishment for all parties involved.
“Mining has now commenced, and after a relatively short development period of two months, Macy is expected to generate strong cash flow, funding the company’s exploration activities at both its Imperial and Tawny projects,” said Mr Wither.
Mr Wither added that the Imperial joint venture “remains on track for its first shipment of high-grade zinc and lead product from the Macy Project by the end of Q3 2018.”